FxWirePro: Sell S&P500 on rallies

S&P500 is trading weak for past 10 trading days and lost more than 4% on ongoing trade escalation. Chinese media says that China is planning to cut rare earth minerals exports to US.The yield curve inversion (3 month and 10 year yield) indicates chance of recession. The index hits low of 2766 and in the month S&P500 has lost more than 5.5% from high 254. It is currently trading around 2785.

On the higher side, major support is around 2760 and any violation below will drag the index down till 2745 (300- day EMA)/2720.

The near term resistance is around 2823 and any indicative break above will will take the S&P500 index till 2851/2890.

It is good to sell on rallies around 2805-10 with SL around 2840 for the TP of 2741/2725.